McDonald’s Michigan region

Regional headquarters: Brighton Employees: About 33,000 Restaurants: More than 500 Michigan products: Last year the company spent $166 million in on Michigan products, including 60 million eggs, 42 million pounds of pickles and 29 million pounds of apples

In a renovated McDonald’s, not far from the fast-food giant’s regional headquarters in Brighton, the area’s new vice president and general manager, Francisco (Pancho) Gonzalez, talks about the ubiquitous chain’s changing look and menu.

Michigan, he says, is an important part of the company’s operation and strategy -- the “plan to win,” he calls it.

The state often is a test and early launch market for new items. It is where tons of meal ingredients the company buys -- including, eggs, pickles, apples, blueberries, cherries and beef -- are grown. About 33,000 people are employed by McDonald’s at more than 500 restaurants in Michigan, he says.

Gonzalez, who was tapped earlier this year to lead the regional team while it undergoes a multimillion dollar makeover ($62 million in Michigan so far) to give its restaurants a more upscale feel, says he aims to beat competitors by offering better service, better prices and better surroundings.

And as if on cue, Gonzalez mentions the company’s advertising slogan while describing his new job. “I’m lovin’ it,” he says. He repeats the phrase in Spanish -- highlighting his Mexican heritage and the company’s global reach -- “me encanta.”

But, he and franchise owners, such as Jim Thrower who also joined the May 10 interview, face big challenges, too.

McDonald’s began its $1-billion nationwide effort to transform 14,000 restaurants two years ago.

The renovations replace a plastic, industrial look with one that is softer, natural and techie. They offer customers more earth tones -- stone and wood -- and more technology, including large, flat-screen TVs, free wireless Internet -- and places to plug in electronic devices.

“Our customers are telling us, ‘This is what we like,’ ” he says of the makeovers, adding they are scheduled through 2015. “Companies have to evolve. We have evolved with many things, with products, our food offerings. What has never changed is the golden arches.”

But, even the iconic arches, he acknowledges, have been updated in some areas, such as over the drive-through. At the renovated restaurants, the arch has become more of a swoosh.

And the same day Gonzalez is interviewing, workers organized by a coalition of labor and faith groups staged protests at fast-food restaurants including two McDonald’s in Detroit -- one on Gratiot and one on West Grand Boulevard -- to gain better wages and working conditions.

The day before, McDonald’s -- hit with all-time high beef prices -- announced it cut one-third pound Angus burgers from its menus.

“We are looking for the evolution of that line,” Gonzalez says.

Recently, the company began offering its limited late-night breakfast menu here. And about five years ago, it tested its McCafe coffee line in the state. The line of special drinks has helped keep the company competitive with coffee chains.

“What the customer is looking for is the best food for the best value in the best place,” Gonzalez says. “We call it the McDonald’s experience.”

Subhead

I’d like to just start with your nickname, Pancho, and ask where that came from?

Pancho is a short name for Francisco. Francisco would be my legal name. If you are from Spain, it would be Paco. If you are from Mexico, it would be Pancho.

How did you get started with McDonald’s?

Twenty years ago, I started my career with McDonald’s. I applied to be an owner/operator in Mexico. My background is tourism, the hotel industry. I entered the program and I had the chance -- and this is important -- the fortune of opening my first restaurant in the town I was born and raised, Tobasco, Mexico. Like Tobasco sauce.

You ended up owning five franchises?

I opened one. And then, I was an operator for eight years in Mexico. When I became an employee of McDonald’s, I had five restaurants.

You still own them?

No. That would be a good thing. (Laughter.) But, no. It’s a conflict.

I’m interested in your transition to becoming a corporate executive.

If I may, there is a very important award worldwide. It is called the Golden Arch award. It is given every two years to the best 25, 26 operators around the world, and I had the honor of receiving that award. That was in 2000. And then, right after that, we had conservations about the possibility of working for the company as an employee.

I made a decision. I sold my restaurants, and became an employee of the company. That took me to work in several countries, including, Panama, Brazil, Argentina, the southern California region in the U.S., then Mexico as a managing director -- and then back to the U.S.

Do you have advice for someone wants to be an owner/operator or a corporate executive?

First, you have to work very hard and do your job. You have to get the results. Second, you have to continue educating yourself, you have to continue getting ready for an evolving world, an evolving customer Any chance for an education you have, take it. Third, you’re going to have to take some risks. You’re going to have to get out of your comfort zone. Take some risks.

How often do you eat at McDonald’s?

Every day.

What do you like least about working for McDonald’s?

The only thing is when we talk about a customer experience, and something doesn’t go -- for whatever reason -- the way we expected for a customer, I’m upset with that. But, the good thing is we’re going to fix it immediately.

What do you like best about what your doing?

For me -- this is important and I tell my mother this all the time -- I still do the same things as I was doing as an owner/operator. Now, instead of doing it for five restaurants, I’m doing it for over 500 restaurants. I go the restaurants, I talk to the crew, I talk to the customers, I talk to my partners, the owner/operators and I’m lovin’ it. Me encanta.